GBP/USD bullish above 1.2610/15 – UOB

According to FX Strategists to UOB Group, the pair’s outlook should turn to bullish on a close above 1.2610/15.

Key Quotes

“The sudden acceleration higher was unexpected as GBP surged and closed at 1.2548, not far below the day’s high at 1.2561. Upward momentum remains strong and there is room for the current rally to extend further towards 1.2610/15. That said, the pace of any further up-move would likely be slower. Support is at 1.2515 followed by 1.2470. The low of 1.2428 seen early yesterday is not expected to come into the picture”.

“The sharp rise and strong daily closing yesterday came as a surprise. While the overnight high of 1.2561 is still within our expected 1.2400/1.2580 consolidation range, the undertone has improved considerably. The immediate pressure is on the upside but GBP has to clear the major 1.2610/15 resistance to indicate that it has started on a sustained upmove (with an immediate target of 1.2705). Only a move back below 1.2470 would indicate the positive undertone has eased”.